At 14:40 UTC on February 19, 2019, Bitcoin rose from the ashes and briefly hit the $4000 USD resistance price barrier before settling down to the mid $3900s.
From the long drawn out sideways price action at the end of 2018, where Bitcoin skirted the $6000 level for a number of months, came a shocking dump in the market, sending the price continually downwards at a sharp angle, until the leading cryptocurrency stabilised just above $3000, half the price of the previous month.
$1000 Was On The Cards
Since the beginning of 2019, investors and traders alike have been wondering whether Bitcoin will either start the ascent back up to its all time high of $20,000, or whether it will dump to levels not seen since mid 2017. Some community members were even speculating that a drop to the $1000s was a strong possibility.
In a shock reversal, Bitcoin has climbed strongly, seeing nearly a 10% increase in price over the first 24 hours, and has now hit the $4000 level, to the joy of traders everywhere.
Bear Market Reversal?
$4000 marks a key psychological resistance level in Bitcoin’s price. If we can successfully pass this level and stabilise, there will be more questions than answers in the trading community. Will this new rise signify the start of an uptrend, and a complete reversal of the bear market? What goes up must come down, and what goes down must come up. This bear market has been the longest in the history of the cryptocurrency market, and some are hailing this sudden spike as the beginning of a slow uptrend which will build up to a full bull market sometime this year.
Is This A Fake-Out?
Some, however, believe that this price rise is simply a fake-out before the final drop to the $1000-$2000 price area. While this may seem overly pessimistic, this has happened on numerous occasions, and it wouldn’t be surprising if this were to be the case again. Although a reversal has to happen at some point – and many are questioning just what such a reversal would look like. This sudden price spike may well fit the bill.
All That Glitters Is Not Gold
Some have been analysing trends and market patterns in other industries, on both a short and long timescale. One example is seen below:
The Gold Futures market over the span of a decade shows surprising similarities to Bitcoin’s price action on a shorter timescale. Can the human psychology of fear and greed, which most markets do in fact seem to run on, be an accurate predictor of future growth in the Bitcoin market?
There’s Hope, But Lets Wait And See
Lets face it, the bear market has to end at some point. This could well be the very hour that it’s truly happened – but lets not get our hopes up just yet. Time is the ultimate test here, and if Bitcoin’s price stabilises well above the $4000 level, and has another few weeks of growth, we may be able to say with certainty that we’re out of the woods, and that we’re outrun the dastardly bear that was chasing us… for now.